Instant Trend Lines, Trend Line Scanning and more. |
Phone 509 926-1055 |
| Scan For: MACD Divergence -- Fibonacci Retracements -- Chart Patterns -- Breakouts -- Trend Lines -- More |
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| About this Site. This site was created by Andy Skinner, the creator of the Ramp Trend Line Market Scanner by Nebadawn.com. Several topics are discussed which include pertinent links to great trendline tools. Note that I have spelled Trend Line differently in the same sentence. Lets get the correct spelling handled right now. Is it Spelled Trend Line or Trendline? You can find it spelled both ways where ever you look and you may even have an opinion. I checked two sources for the final answer, Microsoft Word and Google. Since they pretty much rule the world, I thought I would let them settle it. Microsoft Word says that trendline is a miss spelling and that trend line is correct. I then decided to put it to a vote and searched Google for "trendline" and "trend line". Trend line had 325,000 hits and trend line only 203,000. So there you have it. By Microsoft and Google popular vote, it is spelled trend line. I however, reserve the right to use both spelling and will on this page. How to Draw Trend Lines? Drawing Trend lines is simple but time consuming and somewhat subject to your personal desires. Also, it is very difficult to check all of the time frames and be sure you have looked back over 1000 bars to find the lines that may be missed. We suggest that you not draw trend lines. Trend lines are better off drawn by an impartial automatic mathematical model. It is like have an impartial expert at hand to draw them for you as a second opinion. What about Automatic Trendlines. Automatic trend lines are very valuable and in my opinion, a chart without automatic trend lines is incomplete. The Ramp Trendline Scanner has a feature called BobCharts that automatically adds the most important trendlines to a chart. This is very difficult to do by hand and it really takes a computer to do it correctly. The problem with drawing your own is that it is too time consuming, too subjective and almost nobody checks all of the zoom levels to be sure they have not missed a long term line. BobCharts look back 1000 bars and mathematically do the job for you instantly. Actual Video of a Running BobChart Automatic Trend Line Scan  What are Reaction Lines? Each trend line has a complimenting Reaction Line. A Reaction Line is a parallel line to the trend line that is drawn through the farthest paint away from the trendline. This actually defines a trading channel for each trendline. Don't under estimate reaction lines. They a very helpful in understanding the movement of a stock. In the automatic trend line scan video above, the blue lines are reaction lines and the red lines are the trend lines. It is very difficult and nobody hand draws the reaction lines. Without them, you are only seeing half the picture. Can I get Streaming Automatic Trend Lines for My Real Time Trading? Most traders use End of Day charts for trendlines. However, the Ramp Trendline Scanner Program has an optional real time data feed and will allow you to set up a single or list of symbols for continuous updates. You can see a video of real time streaming automatic trend lines at www.RampRT.com. Are Trend Lines Best Drawn on Highs and Lows or Closing Prices? I wrote the Ramp Trend Line Scanner and included this feature as an option for the Trendline Scans. If you want to answer this question for yourself, do a simple test. On any given day, run a simple support line touch scan on the Russell 2000. First run it with the "Use Lows or Highs" checked and then run the same scan with "Use Closing Prices" checked. You will find that you will always find more stocks honoring closing price trend lines than trendlines drawn on the lows of the bars. There is about a 15 percent improvement when using closing prices. I however, always use Lows or Highs because I often publish the images and a trendline drawn through the closing prices on a bar chart looks like a mistake. What about Trendline Breakouts and Breakdowns? Breakouts and Breakdowns are a very important part of Trendline Trading. A good trendline scanner can automatically scan for any variation of a price interacting with a trend line. This not only includes Breakouts and Breakdowns but also other patterns that occur on a trend line. These will include MACD Divergences, W Bottoms or Tops, Head and Shoulders Patterns, Simultaneous Trend Line and Fibonacci Retracement Level touches. This is called combination pattern scanning and is well worth your while to investigate. The Ramp Program will do all of this very easily Is a Trend Line a Good Place to Place You Order? I have always considered trend lines to be nothing more than a logical turning point for a price reversal. If a stock has moved far enough in one direction and is about to turn, it will find a logical turning point to do so. Trendlines work really well for this. For that reason, I always have at least one additional reason to buy or sell the stock. I especially like to use MACD divergence on trend lines as entry positions. To really get on top of this watch the MACD Training Video Series at http://www.freestocktradingtrainingvideos.com. Using a Trendline as a Stop. Trendlines are great for stop losses. In the case of a bullish trade, you can purchase the stock right above a trend line with the assumption that it is going up. If it goes down, you can easily protect yourself by selling the stock the next morning after it closes beneath the trend line. The trendline becomes a line in the sand, below which you will not hold the trade. This will always protect you from large losses. Actual Video of a Running Ramp Trendline Scan  The Trading Rule Never to Break Never buy a stock without looking at the Support and Resistance Line Chart (BobChart) first. This is another unbiased look at the chart that you simply can not ignore. Instant Automatic Trendlines are essential as an impartial second opinion. You can create automatic trend lines and do trend line scans on any charts for any market world wide.. They are used for Stocks, Forex, Futures and Commodities everywhere. If you would like to try it free to see how automatic trendlines will improve your trading, click here to install the Ramp program at . Thank you Andy Skinner andy@nebadawn.com phone 509-926-1055 in the USA |